Modi is Ronald Reagen of India: Raghuram

PTI, PANAJI | 21 May 2015 23:38 IST

The expectations from the Narendra Modi government when it came to power in 2014 were “probably unrealistic” but it has taken steps to create an environment for investment and is “sensitive” to concerns of investors, RBI governor Raghuram Rajan has said.

“This government came in with tremendous expectations and I think the kind of expectations were probably unrealistic for any government,” Dr Rajan said responding to questions after his address to the Economic Club of New York on Tuesday.

He said in the minds of the people, PM Modi’s image was that of “Ronald Reagan on a white horse” coming to slay anti-market forces and such comparison was “probably not appropriate.”

Dr Rajan, however, said the government has “taken steps to create the environment for investment, which I think is important.”

The government is “sensitive” to the concerns of investors and is looking into addressing economic issues, he said.

“My sense is that things are happening,” Dr Rajan said.

The RBI governor said a “big part” of the business environment is taxes and the government has said it will not bring retrospective taxation again.

“However once the tax authority levies a demand on you, there is a quasi-judicial nature of that proceeding and therefore it has to go through the courts before it is resolved. The government cannot intervene,” Dr Rajan said.